=Paper=
{{Paper
|id=Vol-3013/20210010
|storemode=property
|title=The Unification of Approaches to Measuring the Digital Maturity of Business Structures (International and Domestic Approaches)
|pdfUrl=https://ceur-ws.org/Vol-3013/20210010.pdf
|volume=Vol-3013
|authors=Iryna Strutynska,Lesia Dmytrotsa,Halyna Kozbur,Liliya Melnyk,Roman Sherstiuk
|dblpUrl=https://dblp.org/rec/conf/icteri/StrutynskaDKMS21
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==The Unification of Approaches to Measuring the Digital Maturity of Business Structures (International and Domestic Approaches)==
https://ceur-ws.org/Vol-3013/20210010.pdf
The Unification of Approaches to Measuring the Digital
Maturity of Business Structures (International and Domestic
Approaches)
Iryna Strutynska 1, Lesia Dmytrotsa1, Halyna Kozbur 1, Liliya Melnyk 1and Roman Sherstiuk1
1
Ternopil Ivan Puluj National Technical University, Ruska str., 56, Ternopil, 46001, Ukraine
Abstract
The current state of digital technologies in domestic business is drastically different from the
world’s one. The use of international methodologies to determine the level of digital maturity
of business using appropriate indicators is not acceptable for domestic realities due to the low
overall level of use of digital technologies in the economic space. The task of developing a
national methodology for determining the index of digital maturity of business is relevant and
important. Such a methodology should take into account the current state of the national
economy, reflect an in-depth analysis of digital maturity indicators of business structures and
take into account their dynamics, while being flexible to respond quickly to new economic
processes and phenomena, and provide further unification with international methodologies
(e.g. DESI). The article analyzes the international approaches to measuring the digital
maturity of business structures, and offers its own national methodology for determining the
index of digital maturity of business developed on its basis.
Keywords 1
Digital Transformation, Digital Maturity, Digital Tools, Business-structures, Digital Maturity
Index (HIT)
1. Introduction
The world economy has undergone profound changes due to the existence of diverse external
influences and the multi-elemental internal structure. The European Union is systematically digitizing
its economy, expecting the growing global impact of advanced technologies and growing profits from
e-commerce, data exchange and services. The realities of the global world determine precisely such
conditions for modernizing the economy and creating clear rules for a new era of innovation. The key
issue is digital adaptation and business transformation. The current state of implementation of digital
technologies in domestic business differs significantly from the world. Due to the low general level of
digitalization of the domestic economic space, the use of international methodologies for measuring
the digitalization of business is not acceptable. Calculation, analysis, and further bringing to world
standards of the National Index of Digital Maturity of Business on the basis of real indicators will
serve as a driver for further practical steps to improve their digital development in order to bring to a
new competitive level.
2. Digital Scoreboard of the European Community
The main tool for assessing the development of the digital economy and society in the EU is the
so-called digital scoreboard, which consists of more than 150 indicators reflecting various aspects of
digital development, including Internet penetration, digital skills development, digitalization of
ICTERI-2021, Vol I: Main Conference, PhD Symposium, Posters and Demonstrations, September 28 – October 2, 2021, Kherson, Ukraine
EMAIL: strutynskairy@gmail.com; dmytrotsa.lesya@gmail.com; kozbur.galina@gmail.com; liliana.mel0512@gmail.com;
romsher85@gmail.com
ORCID: 0000-0001-5667-6569; 0000-0003-2583-3271; 0000-0003-3297-0776; 0000-0001-8844-5490; 0000-0002-4079-1228
©️ 2020 Copyright for this paper by its authors.
Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
CEUR Workshop Proceedings (CEUR-WS.org)
business and public services. The source of data for the formation of this digital scoreboard is a
survey of statistical services of the European Commission (Eurostat and DG CNECT) on the use of
information and communication technologies (ICT) among households and enterprises of various
forms of ownership. Data are also collected from special studies launched by the European
Commission. Such data are collected both for domestic purposes and for reporting to international
organizations, such as UNESCO, UNCTAD, the World Bank, Eurostat. However, the specific set of
indicators of the digital scoreboard changes periodically in order to adequately reflect the latest trends
in the field of digitalization and the general use of information and communication technologies
(ICT).
Based on the digital scoreboard, two key reports on the state of the digital economy in the EU are
generated. They are the Digital Economy and Information Society Index (DESI) and the European
Digital Progress Report (EDRP). The difference between them is that EDPR focuses more on the
digital development of an individual country, namely the changes in legislation and others. Both
digital scoreboard data and national legislation are used. At the same time, DESI provides a
generalized view of digital development in the EU member states based on mainly statistical data and
covers information on the following aspects: Internet access, digital skills, integration of digital
technologies, use of the Internet, digital public services. The most important requirement for this data
is compliance with EU standards to ensure correct comparisons and coordinated decisions at the level
of the European Commission and national governments. It should be noted that in the EU countries, in
addition to the above indicators, separately analyze indicators that characterize the scientific support
of digital technology, including the dynamics of research and development (R&D) in ICT, the number
of projects of the EU Framework Program for Research and Innovation, like “Horizon 2020” and
others. As for other digitization indicators (those that are not used directly for DESI calculation),
some of them are being revised today.
The main indicators for assessing the development of the digital economy in the EU are a number
of global indices. Based on certain statistical methodologies and observations they reflect the level of
development of the digital economy in different countries. Among such tools, we can single out the
most global (Table 1).
Table 1
List of global statistical indices that reflect the level of digital development of the country
Ukraine’s Position
# Methodology Title
in 2018
Group I indices: reflect the general level of development of the country
1 Global Competitiveness Index (GCI (WEF) [1] 81 (137)
2 Global Innovation Index (GII) [2] 43 (126)
Group II indices: reflect the level of technical infrastructure for effective business and country
development
3 Networked Readiness Index (NRI (WEF) [3] 64 (139)
4 Broadband Penetration Index (ITU) [4] -
Group III indices: reflect the level of digital development of the country
5 World Digital Competitiveness (WDC) ranking [5] 58 (63)
6 ICT Development Index – IDI [6] 79 (174)
7 Index of digitalization of the economy BCG (e-Intensity) [7] -
8 Digital Evolution Index – DEI [8] 62 (90)
9 European Digital Progress Report [9] -
10 Digital Economy and Society Index (DESI, IDESI (EU) [10] -
Group IV indices: reflect the level of digital business development
11 Dell Technologies Digital Transformation Index (DT Index) [11] -
12 IDSME index evaluation of SMEs digitalization [12] -
Note: structured by the authors
Our country is not included in a number of ratings, however, declares a plan for implementation in
the relevant rating systems in the near future and predicts the leading positions.
3. Global Statistical Indices of the Level of Country’s Digital Development
3.1. Group I Statistical Indices
In-depth analysis of metrics for assessing the digital transformation of business structures will help
to develop proposals for the development of methods for assessing the digital development of
domestic business structures.
Group I indices include Global Competitiveness Index (GCI (WEF) and Global Innovation Index
(GII). Global Competitiveness Index (GCI (WEF) consists of 113 variables that detail the
competitiveness of countries around the world at different levels of economic development. The set of
variables comprise two-thirds of the results of a global survey of company executives (to cover a wide
range of factors influencing the business climate in the countries studied), and one-third of publicly
available sources (statistics and research organizations).
All variables are combined into 12 benchmarks that determine national competitiveness in
diversified areas (quality of institutions; infrastructure; macroeconomic stability; education; etc. They,
in turn, are grouped into three sub-indices according to three main stages of development: basic
requirements, efficiency enhancers, innovation factors and complexity. Among 137 countries, in 2018
Ukraine ranked 81st.
One more global index that is included in group I indices (Table 1) and which is worth analyzing
is Global Innovation Index (GII). The global innovation ranking of the world's countries is compiled
annually by Cornell University, the INSEAD School of Business and the World Intellectual Property
Organization. It consists of 80 indicators, and 126 countries are evaluated in reference to this index.
The Global Innovation Index is based on two sub-indices: the Innovation Contribution Index and the
Innovation Issue Index. Both subindexes are calculated as simple averages of their structural
components.
The trend of the value of the corresponding index in the dynamics of 2012 - 2018 reflects the
effective innovative changes in the development of our country (see Figure 1).
Figure 1: Comparison of GII dynamics for individual countries of the world and Ukraine for the
period 2012-2018 (obtained by the authors on the basis of Global innovation index data, 2018)
In 2018, Ukraine took 43rd place, which is 7 steps higher than in 2017. Ukraine demonstrates the
highest indicators of innovation in education and science (43rd place in the ranking) and business
(46th place in the ranking). It should be noted that institutions and infrastructure remain the least
innovative (107th and 89th place in the ranking, respectively).
3.2. Group II Global Statistical Indices
Group II indices (Table 1) reflect the state of infrastructure for the effective development of the
economy, including its digital component.
Networked Readiness Index, NRI (WEF) is used to assess the driving factors and the impact of
network readiness and ICT capabilities in a particular country. This takes into account the equal legal
role and responsibility of all “team members” of society, i.e, individuals (public), business and
government. The Network Readiness Index consists of four sub-indices that assess the environment
for ICT development, society's readiness to use ICT, the actual use of ICT by the state, business and
the population, as well as the consequences of ICT in the economy and society.
Regarding Ukraine’s ranking, the country failed to demonstrate high positions in the Network
Readiness Index. Weak positive dynamics occurred only due to changes in the values of the Index,
caused primarily by changes in the structure of the methodology, but not supported by fundamental
changes in the development of information and communication technologies in the country. The lag
behind the components of the use of technology by the public, business and government (88th place)
is the main reason for Ukraine's low results in the world rankings. According to the components of the
relevant sub-index, this is reflected in the following way: public use (76th place), business use (63rd
place) and government use (82nd place).
The next index of this group is Broadband Penetration Index (ITU). In addition to high speed,
broadband access provides a continuous connection to the Internet (with-out the need to establish a
dial-up connection) and the so-called “two-way” connection, i.e. the ability to both receive
(“download”) and transmit (“unload”) information at high speeds. Ukraine's position is at the bottom
of the pile and needs to be improved (Table 2).
Table 2
Values of indicators that characterize the level of use of broadband Internet access in Ukraine
# Indices Explanation
1 List of national broadband policies (2018) none
2 Percentage of people who use the Internet (2018) 53.0 %
Fixed broadband subscriptions per 100 inhabitants of Ukraine
3 16.16 %
(2019)
4 Mobile broadband subscriptions per 100 inhabitants (2019) 41.7 %
Note: structured by the authors
3.3. Group III Global Statistical Indices
Group III indices, which reflect the level of digital development of the country, comprise: World
Digital Competitiveness (WDC) ranking; ICT Development Index – IDI; Boston Consulting Group
(e-Intensity); Digital Evolution Index – DEI; European Digital Progress Report; Digital Economy and
Society Index (DESI, IDESI (EU).
World Digital Competitiveness (WDC) ranking (since 2016) complements the overall rating
Global Competitiveness Index (GCI). This index reflects the effective-ness of the efforts that have
been invested in the development of the digital economy, as well as reflects the effects of the
contribution of digital technologies on the efficiency of the country and provides an opportunity to
assess and manage digital transformations. Ukraine's position in this ranking is 58 out of 63 countries
which were surveyed in this study.
ICT Development Index (IDI) calculated by the International Telecommunication Union (ITU)
since 2009. Initially IDI took into account 11 indicators, grouped into sub-indices for the three groups
of processes: access to ICT (e.g. number of mobile contracts per 100 citizens, volume of international
Internet traffic per capita), use of ICT (e.g. share of Internet users), skills to work with ICT (for
example, coverage of the population with higher education, %). However, in 2018, the index was
supplemented by three new indicators, such as: subscriptions to mobile broadband Internet traffic, the
percentage of mobile phone owners and the percentage of people with information and
communication technology skills. The IDI index is designed to monitor the development of IT in
countries and their position in the global IT market; measuring progress in ICT development in both
developed and developing countries; identifying the digital divide; identifying the potential of ICT
development and the level to which countries can use it to increase their own growth and
development. However, this method, according to the authors, does not allow to comprehensively
assess the level of digital transformation of the economy in the country, as it evaluates mainly
technical parameters, thus identifying the development of the digital economy with the level of ICT
infrastructure and preparedness. Tufts University, in cooperation with Mastercard, has developed a
Digital Evolution Index (DEI) which ranks countries based on their progress in digital development.
The DEI includes 90 countries evaluated across over 100 different indicators. In 2019, Ukraine took
62nd place.
The Digital Economy and Society Index (DESI) include many parameters which give a fairly
complete picture of the state of digitalization of the EU. The DESI report was first published in 2014.
In Table 3 the weights of the main DESI factors adopted in the framework of EU digital policies are
presented.
Table 3
The weights of the main factors of DESI
# Dimension Weight
1 Connection (C) 25%
2 Human resources (H) 25%
3 Use of Internet services (I) 15%
4 Integration of digital technologies (T) 20%
5 Digital public services (P) 15%
Note: structured by the authors
For each country, the index 𝐷𝐸𝑆𝐼 is calculated by the formula
𝐷𝐸𝑆𝐼 (𝐶𝑜𝑢𝑛𝑡𝑟𝑦) = 0.25 𝐶 + 0.25 𝐻 + 0.15 𝐼 + 0.2 𝑇 + 0.15 𝑃. (1)
Indicators C (Connection) і H (Human resources) reflect the general infrastructural state of the
digital economy and society, so they are given the most weight. The Digital Integration (T) factor is
also given high weight, as this indicator captures the use of the first indicator, namely the use of ICT
in the business sector, which is one of the most important factors in the growth of the country's
economy. "Use of Internet services (by citizens)" (I) and "Digital public services" (P) are provided by
the quality of the first factor, namely the infrastructure.
Each of the subfactors is assigned with weight estimates that in total for each factor are equal to
100 % (Table 4).
Table 4
Weight distribution for DESI subfactors
# Subfactor Weight # Subfactor Weight
1 Connection (C) 3 Use of Internet Services (I)
1a Fixed broadband connection 20% 3a Content 33%
1b Mobile broadband 30% 3b Communications 33%
1c Fast broadband connection 20% 3c Operations 33%
1d Ultra fast broadband 20% 4 Integration of Digital Technologies (T)
1e Broadband Price Index 10% 4a Business digitization 60%
2 Human Resources (H) 4b E-commerce 40%
2a Main skills and usage 50% 5 Digital Public Services (P)
5a E-government 80%
2b Advanced skills and development 50%
5b E-health 20%
Note: structured by the authors
When it comes to integrating digital technologies into the business sector, the dimension of
business digitization is more important than e-commerce, its weight is 0.6.
The greatest difficulties arise with the collection of data from the Business Digitization group, as
businesses are not always willing to disclose business results.
In order to understand how the emergence of new digital technologies is integrated into the
business sphere, it is necessary to carry out in-depth monitoring of indicators of this group (Table 5).
Table 5
Criteria dynamics of for assessing the index of digital maturity of business in the period 2015 – 2019
in EU countries
# 2015 2016 2017 2018 2019
1 Businesses where more Businesses where more Businesses where more Businesses where more Businesses where more
than 50% of people than 50% of people used than 50% of people used than 50% of people than 50% of people
used computers with computers with Internet computers with Internet used computers with used computers with
Internet access for access for commercial access for commercial Internet access for Internet access for
commercial purposes purposes purposes commercial purposes commercial purposes
2 They mainly use their They mainly use their own Own ICT specialists * Own ICT specialists Own ICT specialists
own ICT specialists or ICT specialists or the
the services of services of outsourcing
outsourcing specialists specialists
3 High-speed broadband High-speed broadband High-speed broadband High-speed broadband High-speed broadband
Internet (30 Mbps or Internet (30 Mbps or Internet (30 Mbps or Internet (30 Mbps or Internet (30 Mbps or
higher) higher) higher) higher) higher)
4 Mobile Internet devices Mobile Internet devices Mobile Internet devices Mobile Internet devices Mobile Internet devices
for at least 20% of for at least 20% of for at least 20% of for at least 20% of for at least 20% of
employees (for employees (for business employees (for business employees (for employees (for
business communication); communication); business business
communication); communication); communication);
5 Have a website Have a website Have a website Have a website Have a website
6 Website with complex Website with complex Website with complex Website with complex Website with complex
functions (description functions (description of functions (description of functions (description functions (description
of goods or services, goods or services, price goods or services, price of goods or services, of goods or services,
price lists; ability for lists; ability for visitors to lists; ability for visitors to price lists; ability for price lists; ability for
visitors to customize or customize or develop customize or develop visitors to customize or visitors to customize or
develop online goods online goods or services; online goods or services; develop online goods develop online goods
or services; tracking or tracking or status of tracking or status of or services; tracking or or services; tracking or
status of placed orders; placed orders; placed orders; status of placed orders; status of placed orders;
personalized content personalized content for personalized content for personalized content personalized content
for regular / recurring regular / recurring visitors regular / recurring visitors for regular / recurring for regular / recurring
visitors visitors visitors
7 Social media usage Social media usage Social media usage The website has a link 3D printers usage*
with a transition to the
profile of social
networks of the
enterprise *
8 There is an ERP Purchase of medium-high There is an ERP software Purchase of medium- Purchase of medium-
software package for services of telephone package for exchanging high services of high services of
exchanging information centers (call service)* information between telephone centers (call telephone centers (call
between different different functional areas service)* service)
functional areas *
9 Have СRM system Sending B2BG electronic Have СRM system * Sending electronic Sending electronic
invoices (automated invoices (automated invoices (automated
processing)* processing)* processing)
10 Exchange of Payment for advertising Exchange of information Payment for advertising Use of industrial or
information (SLM) on the Internet * on supply chain on the Internet * service robots
electronically with management (optional)*
suppliers or electronically with other
customers companies, or suppliers,
or customers *
11 Used any computer Used any computer Used any computer Used any computer Used any computer
network for sale (at network for sale (at least network for sale (at least network for sale (at network for sale (at
least 1%) 1%) 1%) least 1%) least 1%)
12 E-commerce E-commerce (companies E-commerce (companies E-commerce Analysis of big data
(companies that have a that have a turnover of that have a turnover of (companies that have a from any data source
turnover of web sales, web sales, more than 1% web sales, more than 1% turnover of web sales, (optional)
more than 1% of total of total sales and more of total sales and more more than 1% of total
sales and more than than 10% of B2C web sales than 10% of B2C web sales sales and more than
10% of B2C web sales of total sales on the of total sales on the 10% of B2C web sales
of total sales on the Internet) Internet) of total sales on the
Internet) Internet)
Note: *The changes are traced in comparison with the previous year; structured by the authors
A score scale from 0 to 12 was set for the evaluation and monitoring of enterprises according to
the Digital Maturity Index.
It should be noted that only one-fifth of companies in the EU have a high level of Digital Maturity
Index. However, these results are diversified. Thus, in Denmark more than half of companies have
high digital maturity; on the contrary, in Bulgaria and Romania, the share of companies working on
digital transformation is less than 10% (Eurostat community survey ICT usage and e-commerce in
enterprises, 2019).
In Table 6 data on the degree and speed of penetration of digital technologies into the business of
EU countries are given. It can be noted that social media, electronic bills, mobile applications and
high-speed broadband are the driving force for the digital transformation of European businesses.
Table 6
The speed of penetration of digital technologies in the business of the EU in 2018
Compared to
% EU businesses
Key indicators that reflect the processes of digital 2016 year %
transformation medium and medium
large large
small and small
Having a website or home page 94% 77% 0 0
The website has some interactive features 74% 57% 0 -1
Use social networks 72% 47% 9 8
>50% employees use computers and the Internet 52% 43% 2 3
The fastest broadband connection is at least 30 Mbps 75% 43% 6 5
impossible to
Use ERP software (enterprise resource planning) 76% 33%
compare
Use customer relationship management information
62% 32% 0 1
system (CRM)
> 20% employees with portable devices for commercial use 42% 34% 3 2
Use the services of ICT specialists 75% 18% -3 -1
Online sales (at least 1% of turnover) 38% 17% -1 -1
Exchange data of electronic supply chain management 47% 17% -1 1
Electronic sales in the sector (B2C) business consumer 9% 7% 1 1
Note: grouped by the authors
Cloud computing also provides high growth rates, but so far only in large enterprises. Large
companies are more digital than small and medium-sized businesses.
The main advantages of the DESI index are:
1. Evaluation of the effectiveness of digitization processes: obtaining a general description of
the effectiveness of digitization;
2. Evaluation of dissemination: identification of areas in which the effectiveness of digitization
processes can be improved based on the analysis of the evaluation of the components of the index,
individual indicators and the development of appropriate management measures.
3. Forecasting further action: assessment of progress over time (dynamics of changes in index
values).
4. Comparative analysis: clustering of countries taking into account the values of their indices,
comparison of countries at similar stages of digital development in order to identify the need for
improvement in relevant policy areas.
However, there are some disadvantages as well. They are the lack of data on certain parameters in
some countries (in this case, based on data from the previous period, proxy indicators to identify
trends for the compilation of time series); the national specifics of digitization processes are not taken
into account. Each country has its own parameters and features of the process of digital
transformation. There is no survey of microbusiness, which can make significant changes in the
development of the country's economy.
3.4. Group IV Global Statistical Indices
The fourth group of indices include Dell Technologies (DT Index) and IDSME index evaluation
of SMEs digitalization (Table 1).
Index of digital transformation Dell Technologies (DT Index) is a global ranking that indicates the
status of digital business transformation. In July-August 2020, Dell Technologies entered into a
partnership with independent research firm Vanson Bourne which surveyed 4,300 business leaders –
medium-sized and large organizations in 18 countries and generated a global report showing the status
of business transformation.
The definition of «IDSME index evaluation of SMEs digitalization» covers companies of different
sizes and different areas in three countries: Russia, Serbia and Slovakia The index has two sub-
indices: 1) The use of digital technologies, consisting of eight indicators (the presence of SMEs own
website, accounts in social networks, the use of business models B2B and B2G, cloud computing,
decision-making tools; 2) E-commerce, which includes online sales; e-commerce turnover; and cross-
border online sales.
4. Indexation of Digital Maturity of Business in Ukraine
As Ukraine is not reflected in many global rankings for the development of the digital economy,
there is a problem with understanding the general trend of change in the domestic digital
infrastructure and its position in the global digital context. One of the main reasons for this
phenomenon is the practical lack of information field, roadmaps for business that would recommend
and inform businesses about certain digital benefits and opportunities. Also imperfect and
technologically outdated is the methodology for obtaining statistical data on the digital development
of business structures and the digital economy of the country.
The main source of data in our country is the State Statistics Service of Ukraine which collects
data from the developed unified form (# 1-ICT (annual) "Use of in-formation and communication
technologies in enterprises in 20_") (Appendix B) [13].
In 2017 Ukraine took as a basis the European form of statistical surveys "Community survey on
ICT usage and E-commerce in enterprises" [14] to fill the fourth component (Integration of digital
technologies) of the DESI index.
Declared in the government "Concepts for the development of the digital economy and society of
Ukraine for 2018-2020" measures to stimulate the economy and attract investment, overcome digital
inequality, deepen cooperation with the EU in the digital sphere and build the country's innovation
infrastructure and digital transformation [15] not fully implemented, but the government of our
country declares the following plans for the positions of our country in the global rankings (Table 7).
Table 7
Projected positions of our country in global rankings in 2025
Rating Position Increase
# Indicator
2016 2020 2025 since 2016
Inclusion in
1 Digital Economy and Society Index 2025 (EU) - 20 20
the rating
2 Global Innovation Index 2025 (GII, INSEAD WIPO) 56 40 15 41
3 Networked Readiness Index 2025 (WEF) 64 30 20 44
Inclusion in
4 Broadband Penetration Index 2025 (ITU) - - 20
the rating
5 Global Competitiveness Index 2025 (WEF) 85 60 20 65
Note: grouped by the authors
It should be noted that in order to be able to integrate Ukraine into the relevant global indices, it is
necessary to first unify the groups of statistical indicators, taking into account the differences in the
national specifics of digitization processes and their measurement.
Ukraine started the process of monitoring the DESI index in 2013, when a national system of
information society indicators was created (an informatization agency has existed in Ukraine since the
mid-1990s). With the creation of the State Agency for e-Government, some functions related to the
development of the information society were abolished. The establishment in August 2019 of the
Ministry of Digital Transformation of Ukraine and the position of Deputy Prime Minister, who is
responsible in the government for the policy of informatization and development of digital
technologies, opened new opportunities for monitoring digitalization processes in Ukraine. The
National Concept and the relevant government action plan within it have been developed, but due to
the slowdown in the process of reforming the national economy, this Concept is likely to be revised in
the near future. Back in 2018, under the auspices of the Ministry of Economic Development and
Trade, a working group was established to develop a new system of indicators for the DESI index
which was to be based on the EU DESI system. However, the work of this group proved to be
ineffective, mainly due to a lack of interagency coordination between government agencies. Each
agency had its own proposals for reforming the statistical system and these proposals were
insufficiently aligned with the key player's plans for collecting data in Ukraine which is the State
Statistics Service of Ukraine.
5. Digitization of the National Statistical System as an Important Step
towards the Development of the Digital Economy
Official statistics do not calculate the size of the digital economy in Ukraine, which makes it
impossible to track progress in the process of its digitalization. Today, only the digital economy is
measured in the narrow sense (information and computer services) [16]. Hi-tech products, digitalized
services, etc. are not accounted for. A comparison of national statistical systems on the technological
capabilities of information collection and processing is shown in Table 8. Estonia and Singapore are
leaders in digital transformation.
Table 8
Comparison of technological capabilities of national statistical systems
Indicator for comparison Ukraine Estonia Singapore EU
number of available statistical
96 112 161 226
subcategories
surveys,
surveys, surveys, surveys, censuses,
censuses, censuses, censuses, reports of
reports of reports of reports of enterprises,
data sources used in statistics
enterprises, enterprises, enterprises, statistical
government government government services of
agencies agencies agencies member
countries
xlsx, pdf, csv, xls, pdf, csv,
available formats for uploading xls, csv, xml,
doc, pdf, xls html, tab tsv, html, spss,
ready-made data json, pc-axis
delimited pc-axis
perfection of methods of
calculation of GDP (according to the 75 89 93 89
Data Quality Index)
availability of microdata (detailed
data for scientific activity)
ability to work with data
(modifications, graphs, own
indicators)
indicators prediction
open API availability
The document of the Ministry of Digital Transformation of Ukraine "Audit of the Development of
the Digital Economy" (02.2021) in the process of integration with the international DESI has declared
digital projects which are reflected in Table 9. The terms given in the table are debatable.
It is worth mentioning that in order to take into account the specifics of the national economy, the
list of DESI indicators must be developed by the State Statistics Service of Ukraine in cooperation
with other executive bodies and approved by the government. Only after that the State Statistics
Service will be able to change its statistical questionnaires (forms) and conduct the necessary
specialized surveys.
Table 9
Digital Projects
Estimated
Time of
budget
Title Projects realization
(thousand
(months)
euros)
Research on the selection of indicators of digital
63-77 2
development (all indicators are in rapid diagnostics)
Strategic Project "Reorganization of the statistics system,
level 7: development of models and prototypes of national digital
Statistics, statistics and models of each individual component of the 252-308 6-12
integration digital economy". Package of normative documents,
with institutionalization (state statistics system)
international Project "National Index of Digital Economy Development" 144-176 12
DESI Project "Integration of National Rating Data with the
International Index of Development of Digital Economy 31-39 2
and Society DESI (International DESI, EU")
Further research on the state of digitalization indicators in Ukraine should be conducted in three
main areas: 1) development of recommendations for the adaptation of statistical indicators to EU
standards; 2) development of methods for conducting specialized surveys in the field of digitization
statistics; 3) justification of the use of available indicators that do not fully meet EU standards, but
reflect important processes related to digitalization in the national economy [17]. The conducted
analysis of the indicators of DESI for Ukraine in the framework of the project HIQSTEP («High
Quality Short-term Studies to Support Activities under the Eastern Partnership») testified that without
changes in the existing national statistical system it is impossible to calculate about 50% of the
components of the index.
6. The Importance of Digitalization of Micro and Small Businesses
At the forefront of large-scale digitalization of national economies are large enterprises. However,
in fact, the basis of economic and social well-being both in Ukraine and in the countries of the
European Union are small and medium enterprises [18], which comprise more than 99.5% of the total
number of enterprises in the EU, where more than 66% of workers are robot suppliers and bring about
60% of value added to the total budget (see Figure 2). Small and medium business in Ukraine
occupies a significant part of the economy: it generates 47.2 percent of total value added, and the
level of employment of the population aged 15-64 is 61.4 %.
Therefore, special attention should be paid to effective digital support and digital promotion of
small business, both at the European and national levels [19].
In Table 10 the main reasons why Ukraine should take into account the EU practice in developing
a methodology for collecting and processing statistical information, and the peculiarities of
developing a domestic methodology for determining the index of digital business transformation are
singled out.
Figure 2: Data for 2017 provided by the State Statistics Service of Ukraine and Eurostat
Table 10
Features of development of the domestic methodology for determining the index of digital business
transformation taking into account the European experience
Reasons why Ukraine should Disadvantages that are not
take into account the EU taken into account
The reasons for the need to develop their own
practice of collecting statistics in 1-ICT (annual) "Use of
# methodology for determining the index of
(«Community survey on ICT information and
digital business transformation
usage and E-commerce in communication technologies
enterprises») at enterprises in 20__"
1 EU countries primarily motivate Do not conduct surveys and As the Digital Economy and Society Index (DESI)
business structures to use the data collection of micro- measures the progress of EU countries towards
latest digital technologies. They enterprises. It is micro the digital economy and society, it is necessary
have created an appropriate enterprises (including startups) to take into account that Ukraine is at different
ecosystem in which everyone that use digital technologies stages of digital development compared to EU
uses IT infrastructure immediately at the start of countries.
(education, business, their business and thus
government, medicine, etc.) function effectively.
2 Every year the form is revised The gap between the digital A comprehensive assessment of all business
and modified according to the literacy of European and entities is required. It is necessary to take into
most relevant and important domestic business. Not clear account the current state of digital business
technologies. terminology and most new transformation.
technologies.
3 Transparency and clarity of the The unwillingness of domestic Due to the effective use of digital technologies,
level of development of business business to integrate the the gap between the development of SMEs and
structures of a country. technologies of Industry 4.0 large entities disappear.
without trying the
technologies of Industry 3.0.
4 The data are based on a Use of data from only one Motivating business entities to use new digital
combination of state and source of State Statistics technologies.
departmental statistics with a
system of periodic
representative surveys of the
population, professional groups
and enterprises.
5 - - Guidelines, information source and ability to
determine one's own index of digital
transformation and receive recommendations
for increasing the level of digital maturity.
6 - - Transparency and clarity of the algorithm for
the implementation of relevant technologies in
their own business activities for the business
entity.
7 - - Eliminating "information inequality" between
individual regions, sectors of the economy and
different segments of the population
Note: structured by the authors
7. HIT- index
Based on the above provided analysis, it is necessary to develop own methodology for determining
the index of digital business transformation, which would take into account the realities and specifics
of the domestic market and reflect an in-depth understanding of the processes of digitalization of the
domestic business environment.
In view of this, there has been designed a new approach to the definition of the Index of digital
transformation of business structures, which has the characteristics of a complex system "HIT",
namely the separation of four levels of groups of indicators, which, in turn, contain a system of
subindicators with appropriate weights (see Figure 3). A more detailed argumentation of indicators
and their weight coefficients is reflected in [20]
Figure 3: Groups of indicators for determining the Index of digital transformation of business
structures
On the basis of the consolidated structural indicators of digital transformation of business
organizations the way of definition of the generalized Index of digital transformation of business is
developed:
𝐻𝐼𝑇 = 𝑆𝑢𝑚𝑚𝐻 ∙ 𝜔𝐻 + 𝑆𝑢𝑚𝑚𝐼 ∙ 𝜔𝐼 + 𝑆𝑢𝑚𝑚 𝑇 ∙ 𝜔 𝑇 (2)
where “HIT” – index of digital business transformation; 𝑆𝑢𝑚𝑚𝐻 – – summary indicator of the state
of digital literacy of human capital of the organization; ; SummI – summary indicator of the state of
functioning of digital tools integrated into the business processes of the organization; 𝑆𝑢𝑚𝑚 𝑇 –
summary indicator of the state of use of digital technologies for doing business; 𝜔𝐻 , 𝜔𝐼 , 𝜔 𝑇 – weights
of indicators H, I, T respectively, 𝜔𝐻 + 𝜔𝐼 + 𝜔 𝑇 = 1.
The weighting of indicator І was chosen equal to 0.5 (𝜔𝐼 = 0.5) because the use and
implementation of certain groups of digital tools in the structure of business processes of the
organization transform the existing business model of the organization and act as an imperative for
innovative development of the organization. The weighting factor of the indicator H is chosen as 0.3
(𝜔𝐻 = 0.3) because “Digital” literacy (or “digital” competence) is recognized by the EU as one of the
eight key competences for life and professional activity. The weighting factor of the indicator T is 0.2
(𝜔 𝑇 = 0.2) as a function of the two previous indicators.
The annual assessment of the HIT business digital transformation index would serve as a tool for
monitoring and assessing the effectiveness of doing business in the era of the digital economy,
helping to identify barriers to the development of small and medium-sized businesses, forming a list
of priority economic, legal and regulatory measures (reforms) to improve the implementation of
digital technologies in the activities of domestic business structures and would contribute to the
integration of domestic business into the digital economy of the world.
8. Conclusion
The structure of the national index is proposed, which is inherent in the features of a complex
triune system "HIT" with the key, according to the authors, indicators of digital increase in domestic
business - human capital, digital instruments and digital technologies. The annual assessment of the
HIT index and obtaining reliable data for quantitative and qualitative assessment of the digital
potential of enterprises will help identify bottlenecks in the development of digital infrastructure,
establish constructive digital cooperation and dialogue between society and the state, timely respond
to challenges at all levels of legislative and the executive branch. This, in turn, will contribute to the
significant advancement of the domestic economy as a whole, bringing it to a competitive position,
strengthening Ukraine's positioning in the global economic and political space.
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